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    Steve Kuncewicz

    Legal Issues of Corporate

    Communication in an Online World

    in aSSociation withPubliShed by

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    Legal Issues of Corporate Communication in an Online World

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    STEVE KUNCEWICZ

    Legal Issues of Corporate

    Communication in an Online World

    IN aSSoCIaTIoN WIThPUblIShEd by

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    Contents

    III

    Contents

    Executive summary .............................................................................................................IX

    About the author................................................................................................................XI

    Dedication .......................................................................................................................XIII

    Foreword ..........................................................................................................................XV

    Part One: Theory and practice

    Chapter 1: The corporate communications landscape A brave new world ........................ 3

    Web 2.0 ad social media ....................................................................................................5

    Whats ext? ........................................................................................................................ 7

    Chapter 2: Social media Is it that important? ................................................................. 11

    The Trafigura scadal .......................................................................................................... 11

    The Ja Moir outcry ............................................................................................................ 13

    Twitter becomes a respected jouralistic medium ................................................................15

    Chapter 3: Opportunities and risks................................................................................... 19

    Doig busiess olie .........................................................................................................19

    The coersatio thats happeig without you ..................................................................20

    Images o websites .............................................................................................................22

    Part Two: Employee communications and the law

    Chapter 4: E-mail Instant liability?................................................................................. 27

    E-mail ersus hard copy ersus coersatio ......................................................................... 28

    E-mail Legal risks .............................................................................................................28

    Maagig the risk Policies ................................................................................................ 29

    Summary ............................................................................................................................ 32

    Stop press Gosden v Lifeline Project Ltd ET/2802731/2009, 28 July 2010 .......................... 33

    Chapter 5: Employee monitoring The control panel ....................................................... 35

    Itroductio ........................................................................................................................ 35

    Data protectio ad moitorig ........................................................................................... 36

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    Contents

    IV

    Commo law .....................................................................................................................39

    Electroic commuicatios ad moitorig policies ............................................................... 41

    Chapter 6: Employees and social media ........................................................................... 43

    Is it that much of a risk? ...................................................................................................... 43

    Pros ad cos ..................................................................................................................... 45

    Legal issues ........................................................................................................................ 48

    Where do we go from here? ................................................................................................56

    Creatig a social media policy Key cosideratios ..............................................................58

    Part Three: External communications and the law

    Chapter 7: The Advertising Standards Authority and the CAP Code .................................. 65

    The CAP Code Itroductio ..............................................................................................67

    What does the CAP Code coer? ......................................................................................... 68What doest the CAP Code coer? .....................................................................................68

    The rules ............................................................................................................................ 69

    Status of the CAP Code ad compliace ..............................................................................73

    Sactios ........................................................................................................................... 73

    Oeriew ........................................................................................................................... 74

    Case study: Ryaair ............................................................................................................74

    Coclusios ....................................................................................................................... 76

    Chapter 8: Other issues in advertising law ....................................................................... 79

    Busiess to cosumer .......................................................................................................... 79

    Busiess to busiess ............................................................................................................ 84Geeral legal cosideratios ...............................................................................................87

    Iteral policies, processes ad guidelies ............................................................................93

    Clearace checklist .............................................................................................................94

    Part Four: Social media, brands and reputation

    Chapter 9: Brands and domains ....................................................................................... 99

    Itroductio ........................................................................................................................ 99

    Brads ad the law ...........................................................................................................101

    Chapter 10: Unregistered trade marks and passing-off ................................................ 103

    Passig-off defied ............................................................................................................ 103

    Domai ames Cybersquattig, typosquattig ad gripe sites .......................................... 106

    How distictie does a domai ame hae to be to be protectable uder passig-off? ..........108

    Domai ame disputes...................................................................................................... 109

    Domai ames: A cautioary tale ......................................................................................110

    Damages ......................................................................................................................... 111

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    Legal Issues of Corporate Communication in an Online World

    V

    Remedies ......................................................................................................................... 112

    Passig-off o the World Wide Web where are we ow? ................................................... 112

    Chapter 11: Registered trade marks ............................................................................... 115

    Why register a trade mark? ............................................................................................... 115

    What is a registered trade mark? .......................................................................................117

    Grouds for refusig registratio ........................................................................................ 117

    Comparatie adertisig .................................................................................................... 120

    Chapter 12: Trade mark enforcement and infringement ................................................. 123

    Ifrigemet .....................................................................................................................123

    Who ca be sued? ...........................................................................................................125

    Defeces to ifrigemet ................................................................................................... 127

    Remedies ......................................................................................................................... 129

    How to aoid ifrigemet ................................................................................................ 129Coclusio ....................................................................................................................... 132

    Chapter 13: Defamation ................................................................................................ 133

    Defamatio atio? .......................................................................................................... 133

    Who ca sue? .................................................................................................................. 134

    What a claimat must proe ..............................................................................................134

    What is publicatio? ....................................................................................................... 141

    Referece to the claimat Idetificatio ............................................................................144

    The differece betwee libel ad slader ............................................................................ 145

    Limitatio ......................................................................................................................... 145

    Defeces .......................................................................................................................... 146Cotetious ad tactical cosideratios ..............................................................................151

    Remedies ......................................................................................................................... 153

    Chapter 14: What makes internet libel so difficult to deal with? Practical points ............. 157

    Idetificatio .....................................................................................................................157

    Stop press Tweet i haste, repet at leisure ....................................................................... 160

    Stop press The Defamatio Bill: A libel law for the 21st cetury? ....................................... 161

    Part Five: Copyright in the online environment

    Chapter 15: Introduction to copyright ............................................................................. 167

    Copyright defied .............................................................................................................168

    Which works ca be protected? .........................................................................................169

    Copyright i cotext: Website ad social etwork cotet .................................................... 180

    Chapter 16: Authorship, ownership and duration ........................................................... 181

    Authorship ad owership ................................................................................................. 181

    Who ows copyright? ........................................................................................................181

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    Contents

    VI

    Duratio of copyright ........................................................................................................185

    What are the rights of a copyright ower? .......................................................................... 185

    Chapter 17: Copyright infringement ............................................................................... 187

    Primary ifrigemet ......................................................................................................... 187

    Checklist Primary ifrigemet: Is there a case? ...............................................................188

    Likig, scrapig, framig ad other web-specific ifrigemets ...........................................192

    Secodary ifrigemet ..................................................................................................... 194

    Permitted acts ad defeces to ifrigemet ........................................................................ 195

    Remedies for copyright ifrigemet ...................................................................................198

    Damages What ca I get? ..............................................................................................199

    Will iteret serice proiders pull the plug?........................................................................201

    Chapter 18: Conclusions Where next? ......................................................................... 203

    Part Six: Privacy, data protection and confidentiality

    Chapter 19: Privacy ........................................................................................................ 209

    Deelopmet of the law of protectio of persoal iformatio..............................................209

    Whe ca a claimat brig actio for breach of priacy? .................................................... 211

    Where do we go from here? ..............................................................................................212

    Stop press Phoe hackig ...............................................................................................212

    Stop press Priacy, super-ijuctios ad social media ...................................................... 215

    Chapter 20: Data protection .......................................................................................... 221

    Priacy issues i cotext .....................................................................................................221The Data Protectio Act 1998 ............................................................................................ 224

    Persoal data ................................................................................................................... 225

    How ca persoal data be processed? ...............................................................................228

    Subject access requests ..................................................................................................... 234

    Exceptios ........................................................................................................................ 237

    Priacy policies ad collectig user data ............................................................................. 238

    Data collectio oer the iteret ........................................................................................239

    Sactios for breach of the 1998 Act .................................................................................240

    Ciil remedies for breach of the 1998 Act .......................................................................... 242

    Coclusios .....................................................................................................................242

    Chapter 21: Confidentiality and the law ......................................................................... 243

    What are the requiremets to brig a actio for breach of cofidece? ...............................243

    Remedies for breach ......................................................................................................... 246

    Defeces .......................................................................................................................... 246

    Coclusio ....................................................................................................................... 247

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    Legal Issues of Corporate Communication in an Online World

    VII

    Part Seven: Criminal content The online remit of criminal law

    Chapter 22: Introduction ................................................................................................ 251

    The offeces .....................................................................................................................254

    Limits of liability ................................................................................................................ 254

    Chapter 23: Harassment ................................................................................................ 257

    What is harassmet? .........................................................................................................257

    Pealties ........................................................................................................................... 258

    Cautioary tales ...............................................................................................................258

    Practical poits .................................................................................................................259

    Chapter 24: Obscenity ................................................................................................... 261

    What is obscee? ...........................................................................................................261

    Who ca be liable? ..........................................................................................................261Pealties ........................................................................................................................... 261

    Practical tips ..................................................................................................................... 263

    Chapter 25: Incitement of racial hatred .......................................................................... 265

    What is racial hatred? ..................................................................................................... 265

    The offeces .....................................................................................................................265

    Pealties ........................................................................................................................... 266

    Practical tips ..................................................................................................................... 266

    Cautioary tales ...............................................................................................................267

    Chapter 26: Improper uses of public electronic communications networks ...................... 269What is improper use of a public electroic commuicatios etwork? ...............................269

    Pealties ........................................................................................................................... 270

    Cautioary tales ...............................................................................................................270

    Practical tips ..................................................................................................................... 272

    Chapter 27: Contempt of court ...................................................................................... 275

    What is cotempt of court? ................................................................................................275

    Cotet likely to gie rise to cotempt proceedigs ............................................................. 277

    Whe are proceedigs actie? ......................................................................................... 278

    Whe do proceedigs become iactie? .......................................................................... 279

    Defeces .......................................................................................................................... 279

    Practical poits .................................................................................................................280

    Stop press Facebook juror jailed for cotempt of court ..................................................... 281

    Chapter 28: Unfair commercial practices ........................................................................ 283

    Pealties ........................................................................................................................... 284

    Time limits ........................................................................................................................ 284

    Practical poits .................................................................................................................284

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    Contents

    VIII

    Chapter 29: Malicious communications .......................................................................... 285

    What are malicious commuicatios? ................................................................................ 285

    A cautioary tale ..............................................................................................................285

    Applicatio of the Act ........................................................................................................ 286

    Part Eight: Appendices

    Appendix 1: Sample e-mail policy .................................................................................. 291

    Appendix 2: Sample communications and social media policy ........................................ 295

    Index ............................................................................................................................. 303

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    IX

    ILL START by makig a admissio, ad

    oe which I thik is fairly obious: Im ot

    a traied marketer, busiess deeloper or

    commuicatios professioal. Those that

    are may thik differetly, but my startig

    poit i sittig dow to write this book was

    to fall back o a clich which Ie comeacross whe workig with professioals i

    all of the aforemetioed areas

    stakeholders. Thikig that it might hae

    a more complicated meaig tha the

    atural ad ordiary (cocepts with which

    libel lawyers are ery familiar), I did the

    hoourable thig ad ra for the dictioary:

    A perso or group that has a iestmet,

    share or iterest i somethig, as a busiess

    or idustry.1

    Straightforward eough. From there Ilooked ito the cocept i the cotext of

    busiess ad came upo the cocepts of

    primary ad secodary stakeholders, i.e.

    those without whom busiess cat exist

    ad those without whom it ca. As part

    of the ogoig struggle to stay o topic,

    Ill focus o what I beliee to be the most

    importat stakeholders i ay busiess

    audiece (but ot i ay specific order

    of importace):

    Owers;

    Maagers;

    Staff;

    Customers;

    The public;

    Competitors; ad

    The goermet.

    Yes, this is based o stakeholder marketig

    ad a marketig professioal may argue that

    there are plety of other ad better cocepts

    aroud which to structure my argumets.

    Howeer, it suits my purposes particularly

    well ad helped to gie me the structure for

    this etire project. What Im cocered withis how a busiess commuicates with eery

    stakeholder o my list ad the legal issues

    that arise as a result.

    To add some more structure, Ie split

    the book itself ito seeral parts: the first is

    a oeriew ad map of the ladscape i

    which corporate commuicatio takes place

    i 2011; the secod cocetrates o relatios

    with iteral stakeholders (ad their relatios

    with each other); ad the third sectio

    owards deals with exteral stakeholders.If Ie lied up to my itetio, this book

    should proide a plai Eglish oeriew of

    legal issues i corporate commuicatio. By

    way of disclaimer, howeer, Id say this it has

    become icreasigly clear to me as I become

    more experieced that, i ay legal issue

    arisig from the workigs of a busiess, lawyers

    are o loger the most importat people i the

    room. Like I say, Im o marketer ad Im ot

    i PR. Whe a drama turs ito a crisis, we ca

    maage may if ot most of its elemets, but

    the best adice I ca gie you whe plaig

    or aticipatig your respose to the issues dealt

    with here is to put your team together ad

    defie their roles. Heres a example:

    Maagemet Proidig, where possible

    ad appropriate, the public face of

    Executive summary

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    X

    Executive summary

    the respose to a issue ad makig

    ultimate decisios as to how it should be

    dealt with, takig adice ad iput from:

    Lawyers Adisig o legal issues,

    remedies ad strategic optios ad

    accoutable to the maagemet, but

    takig iput from:

    Public relatios Adisig o exteral

    perceptio, public reactio ad lookig

    to ifluece opiio o the issue,

    idetifyig egatie opiio ad cotet

    takig adice o risk mitigatio from

    the lawyers but aswerig to the busiess

    ad feedig:

    Commuicatios Dealig with the

    o the groud respose to the issue,

    with iput o toe ad cotet from

    public relatios;

    Huma resources Dealig with iteral

    fallout from the issue i questio ad

    correctly maagig outcomes i relatio

    to related members of staff; ad

    Olie team Updatig websites

    where ecessary, feedig ew

    iformatio from as may platforms

    as possible to all of the aboe adcosiderig how the issue i questio

    affects search egie results ad

    olie perceptio.

    This book should proide guidace which

    will at least assist you i istructig your

    lawyers, ad ocabulary ad/or traslatio

    whe you receie their adice. The topics

    coered, ad which I would imagie would

    be amog those which your lawyers will

    coer, iclude:

    Legal risk ad moitorig of employee

    use of IT ad commuicatios systems;

    Employee use of social media;

    Employee priacy ad data protectio;

    Cofidetiality;

    Copyright ad commuicatios;

    Trade marks, passig-off ad

    comparatie adertisig;

    Defamatio Libel ad

    malicious falsehood;

    Domai ames ad disputes;

    Adertisig ad marketig law; ad

    Crimial sactios.

    If this book doest proide you with a A to

    Z of how to deal with the legal repercussios

    of its subject matter, the it does at least

    show you where to start.

    Reference

    See http://dictioary.referece.com/1.

    browse/stakeholder.

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    XI

    About the author

    STEvE KUnCEWICZ is a solicitor i the Itellectual Property & Media team at Gateley LLP i

    Machester, hadlig maily cotetious matters for local, atioal ad multiatioal busiesses.

    Stee specialises i social media ad is a leadig commetator o the subject, haig published

    his first book, Legal Issues of Web 2.0 and Social Media, i Jue 2010. He speaks regularly o the

    subject at atioal ad iteratioal cofereces ad is regarded as oe of the leadig members of

    Machesters Twitterati.

    Stee is described by cliets as brigig tact, discretio ad commo sese to busiessdealigs, a oe-off specialist i his field with a fairly uique uderstadig of IP Law [who] i

    particularhas bee able to apply that to the olie eiromet with great ease ad foresight ad

    a straight talkig professioal who kows his busiess as well as ayoe.

    Stee is a regular media spokesperso ad has gie iteriews to the local ad atioal press

    o arious IP ad media-related legal issues to outlets such as BBC Breakfast, BBC Radio 2, Sky

    news, Graada Tv, More4, BBC Radio Machester, Cetury FM, Talk 107, CityTalk, Rock Radio,

    Kerrag Radio ad LBC.

    Stee has appeared i the Law Society Gazette as Lawyer I The news ad has bee featured

    i the Times, Financial Times, Daily Star, Mirror, Sun, Computer Weekly, Manchester Evening

    News, Liverpool Echo, Crains Manchester Business, PR Week, Insider, EN Magazine, Credit Today,

    Information World Review, How-Do, Sky Moie news, UK Scree, Financial Director, TSG Life, Musicand Copyright ad Computer and Videogames.

    Stee is also heaily ioled i busiess deelopmet, deelopig Web 2.0 ad social media

    strategy, ad wo a commedatio at the 2009 Golde Twit awards for best busiess-to-busiess

    use of Twitter.

    Stee is a board member of Pro-Machester, Hoorary Solicitor to the Machester Publicity

    Associatio, a Coucil Member of Machester Law Society ad a Ambassador for Foreer Machester.

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